Mori Hills REIT Investment Corporation Results of the 29th Fiscal Period ended January 31, 2021 Presentation Material March 18, 2021 TSE Code： 3234 (Asset Manager) Mori Building Investment Management Co., Ltd. https://www.mori-hills-reit.co.jp/en/ https://www.morifund.co.jp/en/ Disclaimer This document has been prepared by Mori Hills REIT Investment Corporation (“MHR”) for informational purposes only and should not be construed as an offer of any transactions or the solicitation of an offer of any transactions. MHR is a publicly-offered real estate investment corporation (J-REIT) investing in real estate and related assets the prices of which may fluctuate. Unitholders of MHR may suffer loss when unit prices decline due to fluctuation of real estate value and profitability, aggravation of financial status of MHR and other reasons. Please make investment decisions at your own discretion and responsibility, and contact securities company when purchasing investment units of MHR. 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Asset Management Company : Mori Building Investment Management Co., Ltd. (Registered as a financial instruments business, Kanto Local Finance Bureau registration no. 408 Member of The Investment Trusts Association, Japan) 1 Contents 3. Operation highlights 37 1. Executive summary 3 Factors that led to changes in dividends per unit from the previous fiscal period 38 2. Investment highlights 4 Change in assets under management 39 Unit price performance 5 Change in unrealized capital gain/loss 40 Financial results 6 Appraisal value 41 Overview of new acquisition Change in the rent and occupancy rates 42 (Scheduled as of August 2, 2021) 7 Tenant status by month and major tenants 43 Dividends per unit growth record 9 Financial overview (as of January 31, 2021) 44 Strengths of continuous growth in DPU and NAV 10 Debt status (as of January 31, 2021) 45 Increase in appraisal NAV per unit 11 Unitholders breakdown (as of January 31, 2021) 46 Forecasts 12 Highest quality portfolio among all J-REITs 13 4. Business environment recognition & External growth 22 Internal growth 25 MHR’s policy/strategy 47 Financial management 29 Business environment recognition 48 Sustainability initiatives 31 MHR’s policy/strategy 49 MHR’s representative property 33 Market-related information 51 5. Appendix 57 2 1. Executive summary Financial Operating revenue: 9,820 million yen, operating income: 6,173 million yen, summary net income: 5,575 million yen Increased revenue and income period-over-period 29th period DPU: 2,909 yen (+0.4% from 28th period) Increasing for 21 consecutive fiscal periods (Jan. 2021) NAV per unit: 147,182 yen (+0.5% from 28th period) Increasing for 20 consecutive fiscal periods Conducted a public offering and additionally acquired Toranomon Hills Mori Tower. Due in part to the fact that the acquisition took place at a price significantly below the appraisal value, DPU and NAV per unit continued to increase. External Additionally acquired Toranomon Hills Mori Tower for 12.2 billion yen as of September 1, 2020 growth While the contract for the only master lease for which fixed rent significantly deviates from the market rent will be renewed at a lower level in the 31st period, because the Toranomon Hills Mori Tower (7.8 billion yen) will be additionally acquired at the same time, the DPU (forecast) will remain the same period-over-period. Going forward, premium properties in central Tokyo are expected to continuously demonstrate competitive advantages even after the spread of telecommuting, as these properties can capture office demand by functioning as headquarters. Internal Even as office vacancy rates rise in central Tokyo, the office occupancy rate for the 29th period maintained growth a high level of 99.6% due in part to the excellent location and quality of MHR’s properties. Rent increases have continued for both rent revision and tenant replacement. The residential occupancy rate for the current period was 94.9%, and while this was a slight decline from the previous period, the overall portfolio impact has been minimal. Financial The fund procurement environment has not changed despite the COVID-19 pandemic. Maintained the management target level by book value basis LTV 45.8%, appraisal value basis LTV 38.1%, remaining duration of debt 4.6 years. (After the property acquisition in the 31st period, LTV based on book value is forecast at 46.8% and LTV based on appraisal value is forecast at 38.9%) New green bonds were issued. (November 2020: 3.5 billion yen, February 2021: 2.0 billion yen) 3 2. Investment highlights 4 2-1 Unit price performance (yen) 200,000 Public Public Public Public Public Public Offering in Offering in Offering in Offering in Offering in Offering in 190,000 Mar. 2013 Sep. 2013 Aug. 2014 Feb. 2016 Aug. 2018 Aug. 2020 180,000 170,000 160,000 150,000 140,000 130,000 Mori Hills REIT 120,000 110,000 100,000 90,000 TSE REIT Index 80,000 70,000 60,000 50,000 40,000 30,000 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th Sep. 14, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 Market 41.9 bn yen 279.4 bn yen value (Sep. 14, 2010) (Jan. 31, 2021) (Note 1) Unless otherwise stated in this document, all amounts are rounded down below the unit and all fractions and areas are rounded up below the decimal point. (Note 2) TSE REIT Index is adjusted as of the 8th period result announcement (Sep. 14, 2010) and shows the relative performance vs. MHR’s unit price performance. 5 2-2 Financial results The 29th period (January 2021) saw increased revenue and income compared with the 28th period and posted a DPU increase for the 21st consecutive fiscal period A public offering was conducted, and Toranomon Hills Mori Tower (12.2 billion yen) was additionally acquired in September 2020. The acquisition took place at a price significantly below the appraisal value, and both DPU and NAV increased. A high occupancy rate has been maintained even as vacancy rates rise for offices in central Tokyo, and rent increases have continued for both rent revision and tenant replacement. 28th period 29th period 29th period Increase/decrease factor (28th – 29th) Jul. 31, 2020 Jan. 31, 2021 Jan. 31, 2021 Actual Actual Difference Forecasted ・Operating revenue (+218 mn yen) Operating Highlights (million yen) - Property acquisition in 29th period +219 - Office rent (pass-through) +9 Operating revenue 9,602 9,820 + 218 9,826 - Utilities and other revenue +4 Rent revenues 9,389 9,614 + 225 9,603 - Residential Rent (pass-through) 8 - Cancellation penalty 8 Other operating revenues 213 206 6 222 △ ・Operating expenses (+73 mn yen) △ Operating expenses 3,573 3,646 + △73 3,665 - Property acquisition in 29th period +50 Expenses related to properties 3,251 3,315 + 63 3,354 - Property management fee +24 - Property taxes +16 SG&A 321 331 + 9 310 - Asset management fee +4 Operating income 6,028 6,173 + 145 6,160 - Maintenance and repairs 13 - Depreciation 9 Non-operating income 1 0 0 0 △ ・Non-operating expenses (+3 mn yen) △ Non-operating expenses 595 598 + 3 603 △ - Interest expenses, etc. Ordinary income 5,434 5,576 + 141 5,558 (new borrowings in 29th period) +11 - Amortization of investment unit issuance cost +5 Net income 5,433 5,575 + 141 5,557 - Interest expenses, etc. 13 Total dividends 5,433 5,574 + 140 5,557 △ DPU Increase/decrease factor for 29th period (Forecasted - Actual) Total units outstanding (units) 1,874,960 1,916,330 41,370 1,916,330 DPU (yen) 2,898 2,909 + 11 2,900 ・Operating income (+13 mn yen) - Maintenance and repairs +20 Other Indices (million yen) - Office rent (pass-through) +7 NOI 7,391 7,561 + 170 7,531 - Residential rent (pass-through) +4 - Depreciation +3 NOI yield 3.8% 3.7% 0.1PT 3.7% - Asset management fee 20 Acquisition price △ △ (weighted average based on the number 390,690 400,851 + 10,161 400,851 of operating days during the period) (Note) (Note) If properties are acquired during the period, the acquisition price is the weighted average based on the number of operating days. 6 2-3 Overview of new acquisition (Scheduled as of August 2, 2021) Toranomon Hills Mori Tower (Additional acquisition) Office 1. Super high rise tower - Tokyo’s new landmark Quake-resistance structure with 52 floors and 247 meters above ground. High-specification offices with a broad floor plate of approx.